Building a robust customer base is essential for any business aiming for sustainable growth. In the digital space, leveraging data-driven insights has become crucial to understanding and expanding the e-commerce base. One of the significant and powerful tools in this eco-system is Amazon Marketing Cloud (AMC), which offers a suite of reports to help businesses analyze and strategize their marketing efforts. Among all the metrics, new-to-brand (NTB) metrics stand out in identifying and acquiring new customers. Lately, AMC has also introduced several updates to enhance the utility of NTB metrics, providing businesses with more granular and actionable insights.
Continue reading the blog to understand the new-to-brand metrics, the importance of NTB in customer acquisition, and how to build a customer base with NTB.
What Are New-to-Brand (NTB) Metrics?
New-to-Brand metrics in Amazon Marketing Cloud (AMC) help advertisers identify and measure purchases made by customers who have not purchased from the brand in the last 12 months. These metrics allow Amazon businesses to analyze the impact of their marketing efforts in acquiring fresh customers, making them invaluable for sustainable brand growth.
Key NTB Metrics
New-to-Brand Orders: The total number of first-time purchases from new customers.
New-to-Brand Sales: The revenue generated from NTB orders.
New-to-Brand Order Rate: The percentage of total orders made by new customers.
Cost per New-to-Brand Customer: The ad spend is divided by the number of new customers acquired.
Understanding these metrics is essential for brands to allocate their budget more effectively and refine their marketing strategies to maximize customer acquisition.
The Importance of NTB Metrics in Customer Acquisition
Measuring the Effectiveness of Marketing Campaigns
NTB metrics enable brands to assess which campaigns attract and engage new customers and which engage repeat buyers. This brief insight helps advertisers allocate their budget towards strategies that drive new customer acquisition.
Optimizing Advertising Spend
By analyzing the cost per NTB customer, businesses can refine their bidding strategies and invest in ad placements that generate the highest return on ad spend (ROAS).
Enhancing Brand Growth
Acquiring new customers is essential for brands' sustainable growth and expansion. All the metrics provide insights into the effectiveness of different channels and help brands fine-tune their customer acquisition strategies.
Key Strategies to Build Customer Base Using NTB Metrics
1. Identify High-Performing Campaigns
Online businesses should use NTB metrics to evaluate which advertising campaigns are performing well and attracting the most new customers. Doubling the ad spend on these campaigns can increase acquisition rates.
2. Leverage AI-Driven Audience Targeting
AMC's AI-powered insights help brands identify new potential customers precisely. With Hector, you can build a lookalike audience and gain actionable insights. Based on this data, NTB ensures that campaigns reach relevant customers.
3. Refine Product Positioning
Optimize product listings, including high-quality images, detailed descriptions, and relevant keywords, improve visibility and attract new or first-time buyers.
4. Invest in Brand Awareness Campaigns
Running Amazon DSP campaigns and Sponsored Brand Ads can help increase brand awareness and drive NTB purchases.
5. Retarget Potential NTB Customers
Amazon DSP enables brands to retarget shoppers who showed interest in their products but haven't made a purchase yet. This strategy helps convert new customers who are unsure about purchasing.
6. Monitor & Adjust Bidding Strategies
Leveraging real-time NTB data, marketers can adjust bids dynamically to target high-converting new customers.
How to Measure the Success of NTB Strategies?
Here are specific Key Performance Indicators (KPIs) that allow brands to assess the effectiveness of NTB strategies:
NTB Order Rate: The higher NTB order rate percentage indicates successful customer acquisition.
Cost per NTB Customer: Lower costs suggest efficient and mindful marketing spend.
Conversion Rate of NTB Customers: Measures how well campaigns convert new visitors and potential customers into buyers.
Repeat Purchase Rate: This tracks customers who return for future purchases.
Conclusion
Setting a strong customer base is vital for long-term sustainable brand success. Amazon Marketing Cloud's New-to-Brand metrics offer a powerful way to track and optimize customer acquisition strategies. The latest updates in AMC NTB strategies give brands access to enhanced attribution models, AI-driven insights, real-time analytics, and seamless integrations with Amazon DSP. Leveraging NTB data helps brands fine-tune their marketing efforts and budget spending and drive sales to reach sustainable growth.
If you are an Amazon brand looking to evolve and want to embrace data-driven decision-making with NTB metrics in AMC, get in touch with Hector today. Create an AMC instance, build a smart audience and get actionable insights.